Professional Documents
Culture Documents
Internship Report of ZTBL: Bahawalnagr Campus
Internship Report of ZTBL: Bahawalnagr Campus
Contact # 0639240298
SUBMITTED BY:
MUHAMMAD IKRAM
B.COM (HONS) MS IT
ROLL NO. 06
SESSION: 2007-2011
DEPARTMENT OF COMMERCE
[Type a
quote from the document or the summary of an interesting point. You can position the text
box anywhere in the document. Use the Text Box Tools tab to change the formatting of
the pull quote text box.]
Dedication
To my parents whose unconditional love & support helped me in making this report.
To my teachers for their cooperation and assistance.
To my siblings for their gentle encouragement & valuable support.
Also my dear mother for supporting me through out my tenure of learning as well as
praying for my success through out my life and also in my future.
Her prayers today make me so proud also my dear father for supporting me financially all
my life, fulfilling my basic necessaries as well as luxuries of life. I am thankful to my
parents for their support through out my study career. Today what I am, because of them.
Acknowledgement
Every praise to Allah Almighty the merciful, who knows about whatever is
there in universe, hidden or evident. Who enables me to get such valuable
knowledge, which definitely helped me in my professional life.
I would like to thanks Mr. Murtaza Bodla who trust my abilities and gave me
opportunity to use my skill. Thanks to all staff of ZTBL. They gave me their
precious time and I learned lot from them. Thanks to all my friends and family
who helped me.
Table of Content
S.NO PARTICULA
RS PAGE #
1. Executive Summary
2. Ch#1 Introduction of the organization
Corporate setup
Organization Objectives
Organizational Chart
Executive Summary
The Zarai Traqiati Bank Limited (ZTBL) is single largest supplier of institutional
agriculture credit in Pakistan. ZTBL is corporate body enjoying sami- autonomy in the
conduct of its operations. The federal government together with state bank of Pakistan
exercise policy control over bank. Both the availability of financial resources and
quantum of lending programs of the bank are subject to their approval.
The funds for lending are provided by State Bank of Pakistan at 2% below bank rate. The
foreign loan obtained from IDA, Swedish International Development Authority, and
Asian Development Bank. Lending is done for uptake of modern technology, tapping of
underground water resources, application of chemical inputs and miscellaneous activities.
My internship goals are to learn about different functions that are performed in branch.
I have learned from internship how to carry out work, handle my responsibilities, and
learned how to interact with others and what kind of organizational behaviors are
acceptable and non acceptable. I leaned time management and work accomplishment
effectively and efficiently.
I observed there friendly environment, strong relationship among pears and computerized
system which enabled organization to avoid problems related to manual system.
CHAPTER # 01
Introduction to ZTBL
The new corporate structure redefines the bank's status as a public limited company
registered under companies Ordinance'1984 with an independent Board of Directors
which aims at ensuring good governance, autonomy, delivering high quality.
For all practical purposes the Bank is an arm for Government for implementing overall
agriculture policy for credit front. The design of credit is linked so for as possible with
the periodic priorities and targets as laid down in annual development plans.
HISTORY OF ZTBL
It was considered after independence of Pakistan that the existing institutional
sources of credit, such as, taccavi and cooperatives, were insufficiently meeting the credit
needs of farmers. Therefore the need for establishment of a third source of agricultural
credit was essentially percolated so as to fulfill the credit requirements of farmers not
only for production but even for the development purposes. Consequently, the ADFC was
brought into existence in 1952 for the purpose of expanding financial facilities and
promoting the development and modernization of agriculture in the Pakistan.
Subsequently in 1957, the ABP was established that can provide both short term loan for
production and long term loan for development. The ADFC & ABP were merged together
as the ADPB in 18th February 1961. The ADPB is the main credit supplier to the
agriculture sector in the country. According to the Companies Ordinance 1984, the
ZTBL was incorporated as a the public limited company on 23th October, 2002. The
ZTBL is governed by Memorandum and Article of Association and registered with the
SECP under Companies Ordinance 1984. Consequently, on 18th November, 2002, all
the assets, contracts, liabilities, proceedings and undertakings of the ADBP were
transferred and vested in the ZTBL on 14th December, 2002 by the Federal Government.
Organizational Setup
Board of Directors
Audit
committee
President
Chief internal
Auditor
Staff Office
MCOs
(1243)
Organization Objectives
With an integrated network of over 27 zonal offices and 358 branches in Pakistan
Sr. No. Provinces zone No of branches
1 Punjab 12 162
2 Sindh 6 93
3 Khyber Pakhtonkha 4 61
4 Baluchistan 3 32
5 Azad Kashmir 1 8
6 Gilgit Baltistan 1 2
Total 27 358
Following are the approved rates for rent of lockers and key deposits against which
lockers will be allocated:
Type Specification Rent Per Annum Rent after grace period Key Deposit
Small 6-1/2"x4- Rs.1,200/- Rs.1,500/- Rs. 5,000/-
1/2"x23"
Loan Schemes
Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.
Farmers owing land up to five acres are eligible to avail loans.
Credit will be given in 3 installments: first year Rs.30, 000/-, 2nd
year Rs.15, 000/- 3rd year Rs.15, 000/- provided the disbursed loan
is used properly.
The credit would be repayable within 1 year with 6 years grace
period with prescribed markup of 9% per annum. Rebate of 1 % will
be allowed in mark-up on timely repayment and proper utilization of
the loan.
Sugarcane 30,000
Cotton 21,000
Maize 20,000
Minor Crops
Overall Credit Limit Per Borrower Rs.1.000 Million
Sada Bahar Scheme under one window operation or otherwise Rs.0.500 Million
Growing Orchards
Potato 36000 Bajra 11000
Agricultural Land
Under Pass Book System 80%
Outside Pass Book System 70%
Under Alienability Certificate 66%
Commercial/Industrial Land under Pass Book 80%
3. Government securities
85% of face value or market values whichever is less.
6. NIT Units
80% of the face value or market value whichever is less.
Personal Surety
Against a bond with two sureties under General Credit and one surety in Special
Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties.
Recovery Procedure
A) Recovery Schedule
Recovery schedule in each loan case as per terms of sanction of loan is
fixed and communicated to the borrowers after disbursement of loan.
In case of default or failure in repayment of any installment on due date the
mark-up shall continue to be charged and last installment due to this may
differ from the amount of installments fixed at the time of disbursement.
b) Issuance of Notices
Demand notice is issued before the due date of every installment.
A Legal Notice is issued one month after the due date informing the
borrower that if the amount is not repaid within next one month, further
legal action will be taken to recover the dues.
c) Legal Action
Legal action can be initiated against the defaulter if loan is not repaid even
after expiry of legal Notice period.
Where the court in bank's favour has decreed a case, account is to be settled
by recovery of amount from the auction of the mortgaged property.
The bank may purchase the mortgaged property if considered feasible to
dispose it off later on through auction or in any manner deemed fit for
getting the best price.
The bank may dispose off the mortgaged properties of defaulters for
satisfaction of its dues with out intervention of courts under Financial
Institutions (Recovery of Finances) Ordinance 2001.Rescheduling of Loan
Repayment Facility .
Trend analysis
Horizontal analysis
Vertical analysis
Ratio analysis
Trend Analysis
Trend analysis is done in two steps and first one is Horizontal Analysis:
Horizontal Analysis
An analysis of percentage financial statements where all balance sheet or income
statement figures for a base year equal 100% and subsequent financial statement
items are expressed as percentages of their values in the base year. It is also called
Index Analysis.
Here I have done Horizontal analysis using fixed base method. For which values of the
year 2008 are taken as base.
Formula:- Current Year / Base year * 100
Vertical Analysis
Vertical analysis helps us to show the actual increase or decrease in various items of
Profit and Loss Statement with regard to a specific base as Markup Interest Earned
and for balance sheet items Total Assets are taken as base. This analysis is also called
Common- size Analysis.
Vertical analysis of the balance sheet shows the percentage increase and decrease in
various items in terms of total assets. The above analysis is done by taking total assets as
base and considered this figure equal to 100%.
Ratio Analysis
Ratio Analyses is a tool used in financial analysis. It is the most popular technique of
financial analysis. A ratio is the indicator of the quantitative or arithmetical relationship
between two variables. it can be expressed in terms of fraction, percentage or proportion.
In financial analyses a ratio is used as a yardstick for evaluating the financial position and
performance of a firm.
Liquidity Ratios:-
Liquidity represents the ability of a bank to efficiently and economically accommodate
deposits withdrawal as well as fund increase in assets. A bank has a liquidity potential
when it has the ability to obtain sufficient funds in a timely manner at a reasonable cost.
Liquidity is a primary factor leading to a banks failure whereas high liquidity helps
otherwise weak institutions to remain funded during the period of difficulty.
I. Current Ratio
The calculation of current ratio of the ZTBL from 2006 to 2007 is calculated and
interpreted as under;
Leverage Ratios
Any ratio used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations.
There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
I. Debt Ratio:-
A debt ratio of greater than 1 indicates that a company has more debt than assets;
meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
Used in conjunction with other measures of financial health, the debt ratio can help
investors determine a company's level of risk.
To a large degree, the debt-equity ratio provides another vantage point on a company's
leverage position, in this case, comparing total liabilities to shareholders' equity, as
opposed to total assets in the debt ratio. Similar to the debt ratio, a lower the percentage
means that a company is using less leverage and has a stronger equity position.
Analysis
The debt to equity ratio of Zarai Taraqiati Bank of Pakistan does not show the strong
position of financial position. It is continuously decreasing from last years.
A ratio under 1 means a majority of assets are financed through equity, above 1
means they are financed more by debt. Furthermore you can interpret a high ratio
as a "highly debt leveraged firm".
Formula: (Total debt Total assets)*100
2006 2007 2008
0.17 0.13 0.10
Analysis:
The trend in above given table shows that the Total Debt to Total Asset Ratio decreases
continuously, as in 2007 it was 0.17 and in 2009 it is 0.10. The reason is that the company
is equity based and low financial leverage, accordingly there is very low Debt/Total
assets ratio. This trend is continuing over the past five years.
Profitability Ratios:-
The profitability ratios indicate the efficiency of operations and the organizations pricing
policies. Profitability imitates not only the quantity but also the trend of earning during a
specified period but also influences the maintenance of earnings.
I. Earning per share:-
10.5.1Political
Pakistan despite all international and public perceptions, today is a functioning
democracy and gradually there is a change in complexion and composition of legislatures
with more educated people and women (27% of National Assembly and 17% of Senate)
entering into politics. Similarly it helps in designing best strategies to implement that
could support the revival of bank industry. Like in the era of nationalization bank had to
suffer as other industry thats why that impact is still found in the performance of this
industry.
10.5.2Economical
Although banking sector development is important at the early stage of economic growth,
general liberalization presuming a homogeneous bank role may not necessarily promote
growth. The estimated cost structure indicates that state-owned commercial banks are
large enough, while development financial institutions and private banks can expect to
obtain cost-saving advantages by expanding their operations. Since scope economies are
significant, portfolio diversification generally increases bank profits. In addition,
privatized banks are the most efficient, followed by foreign and private banks. Public
banks are the least efficient.
10.5.3Social
Banks always helped people in improvement of living condition of poor people in various
forms like giving loans to poor for starting business or directly providing them the
instruments that could enhance their living conditions. Similarly ZTBL always tried to
provide the needy people loans on soft terms and also helped to eradicate unemployment
by providing job opportunities Recent high growth trends coupled with enhanced
spending on social and 2007/2008 has together begun to pay some dividends.
10.5.4 Technological
Learnings
Dispatching System
Analysis
New knowledge Acquired
The core of my internship was the knowledge I acquired. Before internship I was
entirely ignorant of a banks business processes. But this internship program has
made me aware of most of banks business processes and hence it has built in me,
immense confidence to step into bank and carry out the routine banking tasks.
New Exposure
My internship experience has given me a completely new industry exposure in the
banking sector, which includes both the consumer banking and branch banking.
People Diversity:
Being an introvert personality, I never had the precious experience in people diversity.
During this internship period, I interacted with so many people both customers and
employees with diverse personalities and behaviors, different age groups, some far
too senior and experienced that it has given me confidence to interact efficiently with
people.
Tactful communication; a MUST
From this internship program, I have realized that the skill to communicate tactfully is
the thing we should learn and polish, especially in dealing with customers. It is not
the most important if you dont have the required skills at this moment. Rather, being
creative in problem solving and being a quick learner are the keys to success in the
fast growing banking sector.
Career Awareness
This program was a career awareness program as well in the sense that it helped me
in identifying my interests. What I have identified is that I want to do some thing
dynamic and not an assembly line kind of job. Moreover, I have found that in
Pakistan, it doesnt matter what is your field of education meaning that as long as you
have the slightest idea of job in hand and you are an active learner, you can work
wonders.
Recommendations
WWW.ZTBL.COM.PK
Total
Amounts in words:---------------------------------------------
Enclose:-----------------------------------------------------------
Prepared by:-----------------------------------------------------
Checked by:------------------------------------------------------
Authorized Signature:---------------------------------------
Zarai Tarqiati Bank Ltd.
Branch-----------------
Name------------------
Parentage------------ Transfer Voucher
Village---------------- Branch Code
Tehsil----------------- Date
Total
No. Particulars Loan G.L TR RO Effecti Amou Contra Recor
Case no./ Hea Code Code ve nt Voucher/Co d
A/c no./ d Date ntra Branch no./CA
Advice no. Code
no.
Total
Amounts in words:---------------------------------------------
Enclose:-----------------------------------------------------------
Prepared by:-----------------------------------------------------
Checked by:------------------------------------------------------
Authorized Signature:---------------------------------------
Annexure C II